State concludes its case in trial of three Anglo executives

The State has finished its case in the trial of three former Anglo Irish Bank executives accused of illegal lending money for the purchase of the bank’s shares.

The prosecution closed its case yesterday after nine weeks of evidence and more than 50 witnesses. The jury are expected to return on Tuesday when it will learn whether the defence intend to call evidence.

The final prosecution evidence heard by the jury was a statement from Aoife Quinn, daughter of Cavan businessman Sean Quinn. Ms Quinn said she was loaned €10m by Anglo to buy shares but she was not aware of why this was being done.

Former Anglo chairman Seán FitzPatrick and fellow ex-directors William McAteer and Pat Whelan, are accused of providing funding for the purchase of its own shares in contravention of the 1963 Companies Act.

The three men have been charged at Dublin Circuit Criminal Court with 16 counts of providing unlawful financial assistance to 16 individuals in July 2008 to buy shares in the bank.

The 16 individuals are six members of the Quinn family and the Maple Ten group of investors.

Mr Whelan has also been charged with being privy to the fraudulent alteration of loan facility letters to seven individuals in October 2008.

Mr FitzPatrick, 65, of Greystones, Co Wicklow; Mr McAteer, 63, of Rathgar, Dublin; and Mr Whelan, 51, of Malahide, Dublin have pleaded not guilty to all charges.

The Maple Ten deal was designed to unwind the 29.4% control of the bank which businessman Seán Quinn had built up through investment products known as contracts for difference (CFDs).

The 10 investors were loaned €450m by Anglo to buy, around 10% of the shares which Mr Quinn controlled. Mr Quinn’s wife and five children were also loaned €169m to buy nearly 15% of the stock.

Ms Quinn’s statement was read to the jury by prosecuting counsel Diana Stuart BL. Ms Quinn said she was aware Anglo loaned her around €10m for the purchase of shares.

She said that she had no dealings with Anglo executives as part of the deal. She said she also had no contact with the Financial Regulator or with investment bank Morgan Stanley, which was hired by Anglo to execute the deal.

Ms Quinn said she was not aware at the time of the reasons she was being loaned the money. She said she was also not aware of her father’s control of Anglo through his CFD positions or the role the “so-called Maple Ten” played in the unwind.

“I signed papers that were presented to me by employees of the Quinn Group in connection with this loan and I accept that this is my signature on the relevant documents connected with this loan,” she wrote.

“As a shareholder in the Quinn Group, I routinely signed documents related to the affairs of the company or pertaining as a shareholder on the request of company executives. This document was no different.”

The trial continues in legal argument until Tuesday before Judge Martin Nolan.